Determine whether each of the following actions in buying, selling, and accounting for inventories is ethical or unethical. Give your reason for each answer.
Determine whether each of the folosing actions in buying sellingand accounting for inventaries is ethical or unethical. Give your reason for each answer. Click the icon to view the actions.) 1. In applying the lower-af-cost-and-net-realizable-valur nie to inventorins. Teme Hausin Industrias raconder an axcessively low not realizable value for its ending inventory. This allowed the company to nay less income tax for the year This action is because 2. Laminated Pholo Filin purchased late of inventory shortly before year-end to increase lhe weighled-average cost of goods sold and decrease reported income for the year. The action is because 3. Madison Inc, delayed the purchase of inventory unilatter December 31, 2017 to keep 2017's cost of goods sold from growing too large. The delay in purchasing inwantory helped net income in 2017 to reach the level of prost demanded by the company's investors This action is because 4. Duver Sales Correary delberately overstated encing inventory in order to report higher profils (rutiname). This action is because 5. Roberto Coporation deliberately overstated purchases to produce a high figure for cost of goods sold flow amount of net income). The real reason was to decrease the company's income tax payments to the government This action is because i More Info 1. In applying the lower-ul-poet-and-nel-realizable-value rule lo inventories, Terre Haute Industries recorded an excessively low net realzable value for its ending inventory. This aloned the company to pay less income tax for the year. 2. Laminated Photo Film purchased lots of inventory shortly before year-end to increase the weighted average cost of goods soll and do nas noted income for the year. 3. Madison Inc, delayed the purchase of inventory unil after December 31, 2017 to keep 20178 cost of goods sold fram graving to large. The delay in nurchasing inventory heined net income in 2017 1a roach the level of profit demanded by the company's investors. 4. Dover Sales Company Albarabaly averated ending inventory in order to mort higher pronts natincama). 5. Roberto Corporation deliberately overstated purchases to produce a high figure for cost of goods sold (low Amount of not income. The reason was to decrease the company's income tax payments 10 the pavernment. Print Done Click to select your answer(s). Determine whether each of the following actions in buying, selling, and accounting for inventories is ethical or unethical. Give your reason for ea (Click the icon to view the actions.) 1. In applying the lower-of-cost-and-net-realizable-value rule to inventories, Terre Haute Industries recorded an excessively low net realizable va This action is V because ecause 2. Laminated sed lots of inventory shortly before year-end to increase the weighted-average cost of goods sold and decrease ethical This action is unethical 3. Madison Inc. delayed the purchase of inventory until after December 31, 2017, to keep 2017's cost of goods sold from growing too large. The This action is ecause because 4. Dover Sales Company deliberately overstated ending inventory in order to report higher profits (net income). This action is because 5. Roberto Corporation deliberately overstated purchases to produce a high figure for cost of goods sold (low amount of net income). The real re This action is because Determine whether each of the following actions in buying, selling, and accounting for inventories is ethical or unethical. Give your reason for each answer. (Click the icon to view the actions.) 1. In applying the lower-of-cost-and-net-realizable-value rule to inventories, Terre Haute Industries recorded an excessively low net realizable value for its ending inventory. This allowed the company to pay less income tax for the year. This action is because ecause 2. Laminated Photo Film purchased ase reported income for the year. the company falsified its reports in order to cheat the government (and the people) out of taxes. This action is V because 3. Madison Inc. delayed the purcha This action is because the company falsified its reports in order to report a higher net income. the Conservatism principle allows companies to record inventory at below market value. there is nothing wrong with buying inventory whenever a company wishes. The delay in purchasing inventory helped net income in 2017 to reach the level of profit demanded by the company's investors. 4. Dover Sales Company deliberately overstated ending inventory in order to report higher profits (net income). This action is because 5. Roberto Corporation deliberately overstated purchases to produce a high figure for cost of goods sold (low amount of net income). The real reason was to decrease the company's income tax payments to the government. This action is because
